When my account first showed a six-figure profit, I didn’t celebrate for long.

I knew those profits hadn’t come out of nowhere. Behind them were lessons learned from countless impulsive trades, bad calls, and refusing to admit defeat.

When I first started trading futures, my favorite thing to do was hold on to losing positions.

I was going in the wrong direction, but I’d tell myself to wait a little longer. If the market kept falling, I’d think about adding to my position to lower my average cost. If the price bounced a little, I’d convince myself my judgment had been right.

More often than not, a small loss would snowball into a big one, and eventually that big loss would wipe me out.

Back then, I was always trying to prove I was right.

Right now, I only care about one thing: whether I’m following my plan.

Over the years, I’ve set a few hard-and-fast rules for myself:

First, every trade must have a reason. Don’t jump in just because someone gives a trading tip, and don’t panic about missing out just because a coin suddenly surges.

Second, losses must have a limit. A stop-loss isn’t admitting you’re incompetent; it’s acknowledging that the market is always uncertain. If you’re wrong, get out—don’t fight the market.

Third, don’t get carried away when you’re making money. After several winning trades in a row, it’s easy to get overconfident and start increasing your position size and trading too often. At times like that, I remind myself to slow down.

Fourth, never blindly add to a losing position and stubbornly hold on. If the original reasoning behind a trade no longer holds, there’s no need to put more money into propping up a bad decision.

Fifth, learn to stay out of the market. If you don’t understand the market, sitting out is the best move. The money in your account isn’t there to prove how hard-working you are.

I used to think a skilled trader was someone who could accurately predict every move up or down.

Now I realize that a skilled trader isn’t someone who never makes mistakes, but someone who doesn’t let one mistake ruin their entire account.

In the end, trading isn’t about who’s the boldest, but who knows when to admit defeat.

Admitting you got it wrong is the beginning of trading; controlling losses is the foundation of making a profit.$JCT $INIT $ARIA